communication, which turn some adverse factors in China-EU relations into driving
forces for making new breakthroughs.
Currently, challenges for China and the EU are different, yet somewhat common.
The EU strives to restore its competitive power on the global market and is
internally undergoing tough governance transformation, industrial transformation
and social transformation including curtailment of publicfinance, promotion of
youth employment, enhancement of competitive power and expansion of foreign
markets. China needs to vigorously propel industrial transformation, a balanced
urban-rural development, environmental protection and governance, social progress
and civilization improvement while maintaining and strengthening its international
competitiveness. Both transformation processes are different, similar and conver-
gent, thus providing both sides with an opportunity for learning from each other,
cooperating with each other towards common progress, while such opportunities
are rare in history: seeking joint development without strategic conflicts in two
totally different civilizations. Success of this cooperation is of much more signifi-
cance for human progress than EU-US cooperation.
(I) The foundation and focus for future development of China-EU relations still
consist in economic and trade cooperation
Economic and trade relations dominate China-EU relations and serve as major
driving forces because not only are both China and the EU paramount economic
and trade players in the world, but also the EU’s main powers, functions, strengths
and its weight within the world pattern are mainly embodied in economic and trade
fields. Therefore, efforts to examine the development of China-EU relations and
operate the future of China-EU relations should start in thefields of economics and
trade. After the European debt crisis, the disequilibrium in European economic
development has not yet been addressed, and the EU is internally and externally
facing comprehensive strategic adjustments including the adjustment of foreign
strategies and the adoption of strategies which are mainly marked by the initiation
of EU-US free trade zone negotiations and by a focus on re-regulating the global
market. China represents an indispensable positive energy for the EU to ultimately
realize its goals for peace and prosperity, and China-EU relations should feature
cooperation rather than competition in the future global economic strategic pattern.
In the next ten years, the EU will be continuously positioned as the largest tech-
nology source for China. China-EU trade relations will continue to grow steadily.
Realization of such growth is dependent on economic progress in both China and
the EU. Modernization and openness of domestic services in China are important
factors for increasing China-EU trade in services. The development of China-EU
economic and trade relations will be driven by bilateral investment with more
developmental potential. Economic transformation and upgrading, urban-rural
integrated construction in China, improvement of the EU’s economic governance
and competitiveness require both sides to better attract capital, technologies and
experience from the other side for fusion of their common interests.
26 H. Zhou